Data Matching and Capital Gains

The Tax Office will continue to focus on capital gains tax (CGT) this year and people who do not report capital gains for the sale or disposal of shares, property and other assets.

A recent A.T.O media release states the Tax Office will be matching data yet again to identify sales that involve capital gains.

Information will be gathered from state and territory revenue offices, managed funds, the stock exchange (ASX) and share registries to match against tax return information.

If you have disposed of assets during the year, be sure to let your accountant know.

Your Tax Return and Share Buy-Backs

During the 2006-07 financial year, listed companies in Australia bought back over 350 million shares according to the A.T.O. This amount to over $5 billion.

Shareholders who have participated in these buy-backs will need to work out any capital gain or loss and include this in their 2007 tax return.

Remember, dividends paid as part of any share buy-back must also be declared in your tax return.